Global Semiconductor Automated Test Equipment Market, 2019

Global Semiconductor Automated Test Equipment Market, 2019

Market will Rebound by 2020 with Demand from 5G and Automotive Electronics

RELEASE DATE
06-Jan-2020
REGION
Global
Research Code: K419-01-00-00-00
SKU: TM00618-GL-MR_23967
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Description

The global semiconductor automated test equipment (ATE) market is witnessing a decline due to the global economic downturn and volatility in demand from the semiconductor market. Trade tensions in major semiconductor hubs – China, South Korea, Japan and the United States – are deterring semiconductor manufacturers and vendors from making any major capital investments. Further, with the slowdown in investment from the data processor and smartphone segments, the ATE market is currently faced with an overall slackening of demand from key end users and geographies. However, testing of semiconductor chips and ICs as a requisite for ensuring optimum performance, functionality and adherence to stringent regulations remains a key market driver, especially with the ubiquity of semiconductors in the telecommunication, consumer and automotive verticals.

Semiconductor vendors are looking to ease the price pressure on testing solutions, which has been more pronounced in the memory segment as a result of high volumes of memory-based semiconductors in the market. In addition, key vendors are heavily focused on meeting the testing needs for next-generation technologies such as 5G and Artificial Intelligence (AI). Both 5G and AI are expected to provide new revenue streams and generate demand for high-end memory and non-memory testers, driving the growth for HBM, 3D NAND, graphic DRAMs, SoC testers etc. Among key end users, the automotive segment provides the highest growth potential for ATE vendors due to the integration of semiconductor electronics and the future assimilation of AI capabilities. These will drive testing requirements throughout the vehicle lifecycle for ensuring optimum performance and conformity with stringent safety standards, which are critical for functionalities such as Advanced Driver Assistance Systems (ADAS) in the automotive segment.

Geographically, China and Taiwan remain the strongest market for ATE vendors due to the high market demand and the presence of many Integrated Device Manufacturers (IDMs) and Outsourced Semiconductor Assembly and Test companies (OSAT) in the region. The overall market for testing is currently dominated by 3 to 4 major market participants that include Teradyne Inc., Advantest and Cohu Inc. All top participants have a strong customer base and geographic presence, although the market for discrete ATE continues to remain more fragmented due to the varying needs of testing. In the long term, open and modular test solutions such as PXI will gain higher traction for meeting the gaps in testing needs for flexible and cost-efficient testing. Vendors will need to focus on addressing the need for high-volume, multi-site and high-parallelism testing needs while simultaneously lower the overall testing cost for end users to achieve strong growth. In the next 2 to 3 years, market solutions will increasingly make use of cloud computing and edge computing to shorten the time to test and allow flexibility in testing.

Table of Contents

Key Findings

Market Engineering Measurements

Market Engineering Measurements (continued)

CEO’s Perspective

Market Definitions

Market Definitions (continued)

Market Definitions (continued)

Key Questions this Study will Answer

Market Segmentation

Market Distribution Channels

Market Drivers

Drivers Explained

Drivers Explained (continued)

Drivers Explained (continued)

Drivers Explained (continued)

Market Restraints

Restraints Explained

Restraints Explained (continued)

Restraints Explained (continued)

Market Engineering Measurements

Market Engineering Measurements (continued)

Forecast Assumptions

Revenue Forecast

Revenue Forecast Discussion

Percent Revenue Forecast by Region

Revenue Forecast by Region

Revenue Forecast Discussion by Region

Revenue Forecast Discussion by Region (continued)

Revenue Forecast by Vertical Market

Revenue Forecast Discussion by Vertical Market

Revenue Forecast Discussion by Vertical Market (continued)

Market Share

Market Share Analysis

Competitive Environment

Top Competitors

Competitive Analysis

Competitive Analysis (continued)

Competitive Analysis (continued)

Growth Opportunity 1—AI and ATE

Growth Opportunity 2—5G and Next-Generation Testing

Strategic Imperatives for Success and Growth

Key Findings

Market Engineering Measurements

Revenue Forecast

Revenue Forecast Discussion

Market Share

Market Share Analysis

Key Findings

Market Engineering Measurements

Revenue Forecast

Revenue Forecast Discussion

Market Share

Market Share Analysis

Key Findings

Market Engineering Measurements

Revenue Forecast

Revenue Forecast Discussion

Market Share

Market Share Analysis

Key Findings

Market Engineering Measurements

Revenue Forecast

Revenue Forecast Discussion

Market Share

Market Share Analysis

The Last Word—3 Big Predictions

Legal Disclaimer

Market Engineering Methodology

List of Companies in “Others”

Partial List of Companies Interviewed

Abbreviations and Acronyms Used

List of Exhibits

List of Exhibits (continued)

Related Research
The global semiconductor automated test equipment (ATE) market is witnessing a decline due to the global economic downturn and volatility in demand from the semiconductor market. Trade tensions in major semiconductor hubs – China, South Korea, Japan and the United States – are deterring semiconductor manufacturers and vendors from making any major capital investments. Further, with the slowdown in investment from the data processor and smartphone segments, the ATE market is currently faced with an overall slackening of demand from key end users and geographies. However, testing of semiconductor chips and ICs as a requisite for ensuring optimum performance, functionality and adherence to stringent regulations remains a key market driver, especially with the ubiquity of semiconductors in the telecommunication, consumer and automotive verticals. Semiconductor vendors are looking to ease the price pressure on testing solutions, which has been more pronounced in the memory segment as a result of high volumes of memory-based semiconductors in the market. In addition, key vendors are heavily focused on meeting the testing needs for next-generation technologies such as 5G and Artificial Intelligence (AI). Both 5G and AI are expected to provide new revenue streams and generate demand for high-end memory and non-memory testers, driving the growth for HBM, 3D NAND, graphic DRAMs, SoC testers etc. Among key end users, the automotive segment provides the highest growth potential for ATE vendors due to the integration of semiconductor electronics and the future assimilation of AI capabilities. These will drive testing requirements throughout the vehicle lifecycle for ensuring optimum performance and conformity with stringent safety standards, which are critical for functionalities such as Advanced Driver Assistance Systems (ADAS) in the automotive segment. Geographically, China and Taiwan remain the strongest market for ATE vendors due to the high market demand and the presence of many Integrated Device Manufacturers (IDMs) and Outsourced Semiconductor Assembly and Test companies (OSAT) in the region. The overall market for testing is currently dominated by 3 to 4 major market participants that include Teradyne Inc., Advantest and Cohu Inc. All top participants have a strong customer base and geographic presence, although the market for discrete ATE continues to remain more fragmented due to the varying needs of testing. In the long term, open and modular test solutions such as PXI will gain higher traction for meeting the gaps in testing needs for flexible and cost-efficient testing. Vendors will need to focus on addressing the need for high-volume, multi-site and high-parallelism testing needs while simultaneously lower the overall testing cost for end users to achieve strong growth. In the next 2 to 3 years, market solutions will increasingly make use of cloud computing and edge computing to shorten the time to test and allow flexibility in testing.
More Information
No Index No
Podcast No
Author Riti Newa
Industries Test and Measurement Instrumentation
WIP Number K419-01-00-00-00
Is Prebook No
GPS Codes 9594,9952